Bloomberg reports that Paulson has roughly $9.5bn invested across his hedge funds, of which about 85% is invested in gold share classes. Gold dropped 4.1% Friday, shaving about $328m from his net worth on this bet alone.
Gold tumbled and entered a bear market after falling more than 20% since August 2011, bringing more bad news for 57-year-old Paulson, who has struggled with poor returns for the past two years.
He told investors last year that his $700m Gold Fund would beat his other strategies over five years because the metal was the best hedge against inflation and currency debasement as countries pump money into their economies. The fund slumped 28 percent this year through March, a person familiar with the matter said this month.
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